Massachusetts · 2026 and 2027
Massachusetts employer payroll taxes and employee cost: 2.42% SUTA on $15,000
In Massachusetts, a $50,000 employee costs a new employer about $63,113 a year in 2026: 26.2% on top of pay for payroll taxes, unemployment insurance, state leave premiums, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Massachusetts
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Massachusetts employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Massachusetts unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Massachusetts unemployment insurance (SUTA)
2.42% of $15,000
New employers pay 2.42% on the first $15,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- Paid Family and Medical Leave (employer share)
0.42% from 25+ employees
Employers with 25 or more covered individuals pay at least 0.42% of eligible wages (60% of the 0.70% medical leave share in 2026; of the family leave share from 2027), capped at the Social Security wage base.
per Massachusetts Department of Family and Medical Leave, as of Jan 1, 2026
- Paid sick leave
40 hours a year
One hour per 30 hours worked, up to 40 hours a year; paid with 11 or more employees. The hours are paid but not worked, so they raise the cost per hour worked.
per Massachusetts Attorney General's Office, as of Jan 1, 2026
- Workers' compensation
$0.97 per $100 of payroll
Index rate for a standard mix of job classes: rank 31 of 51 (1 = highest) and 89% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$8,398 single / $22,118 family
Average employer contribution per enrolled employee a year at Massachusetts private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$15 in 2026
Massachusetts's rate since Jan 1, 2023. Agricultural workers: $8.00.
per Massachusetts Attorney General’s Office, as of Jan 1, 2023
Checked against each source on Oct 23, 2026.
Two worked examples in Massachusetts
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,080 hours | $50,000 |
|---|---|
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.42% of $15,000 | $363 |
| Workers' compensation (state index rate)$0.97 per $100 of payroll | $485 |
| Health insurance (single coverage, state average)average employer contribution | $8,398 |
| Total cost a year | $63,113 |
26.2% on top of pay · $30.34 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,080 hours | $37,440 |
|---|---|
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.42% of $15,000 | $363 |
| Workers' compensation (state index rate)$0.97 per $100 of payroll | $363 |
| Health insurance (single coverage, state average)average employer contribution | $8,398 |
| Total cost a year | $49,470 |
32.1% on top of pay · $23.78 per hour worked
What changes for Massachusetts employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Paid Family and Medical Leave (employer share): the total stays 0.88%; the employer share moves from the medical to the family leave contribution. per Massachusetts Department of Family and Medical Leave, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Massachusetts?
About $63,113 a year in 2026 for a $50,000 employee of a new Massachusetts employer with 10 staff: $13,113 above pay, of which $8,398 is health coverage, $485 workers' comp and $363 Massachusetts unemployment tax. At $18 an hour full time: $49,470.
What payroll taxes do employers pay in Massachusetts?
Massachusetts new employers pay $4,230 yearly on a $50,000 salary, $363 of it state unemployment tax.
What is the Massachusetts SUTA rate for new employers in 2026?
2.42% on the first $15,000 of each employee's pay: up to $363 per employee a year.
What is the minimum wage in Massachusetts in 2027?
$15 an hour in 2026; Massachusetts had not published its 2027 rate by Oct 23, 2026.
Is paid sick leave required in Massachusetts?
Yes. One hour per 30 hours worked, up to 40 hours a year; paid with 11 or more employees. That is 40 paid hours a year for a full-time Massachusetts employee at 100 employees.
How much does workers' comp cost in Massachusetts?
$0.97 per $100 of payroll at Massachusetts's index rate (rank 31 of 51, 89% of the median): about $485 on $50,000 of pay.
How much do Massachusetts employers pay for health insurance?
$8,398 a year per employee with single coverage and $22,118 with family coverage, the average Massachusetts private-employer share of $10,436 and $29,619 premiums in 2025.
Does Massachusetts have a paid family leave or disability tax for employers?
Employers with 25 or more covered individuals pay at least 0.42% of eligible wages (60% of the 0.70% medical leave share in 2026; of the family leave share from 2027), capped at the Social Security wage base.
More employer cost pages
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Data and rules for every state
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.